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Sony Cuts 10,000 Jobs

During a news conference at this year's Consumer Electronics Show, Sony CEO Howard Stringer says that he plans to cut 10,000 jobs to rescue the company's bottom line. This comes as a result of a lawsuit last year concerning 5.7 million CDs that were shipped out under their Sony BMG label with copy protection software which caused a security problems on PCs in which they were played. A software patch was required to plug the hole, but the damage had already been done.

Stringer's main concern seems to be a tug-of-war between Sony's electronics department and the artists which they license. The former aims to provide users with the features they want when buying a Sony product, such as copying music, but the creative forces behind the content want their material protected. Stringer says that the concerns of the artist are something that Sony "feel[s] strongly about."

The CEO's other main concern is the "scattershot" approach the company takes towards pushing and marketing its products. Many of Sony's developments have actually lost money in recent years, their finances being propped up, ironically, by the revenue made on the PlayStation name.

So what does this mean? Stringer wants to simplify their catalogue, which likely means cutting a lot of products in addition to the 10,000 jobs. Instead, they will focus on financing and advertising for a core group of entertainment products. Due to its market viability, the PlayStation cabal of gaming machines (PS2, PSP, PS3) will likely be at the forefront of this new campaign, so fans will have little to worry about.